The most-important factors helping in the growth of the tobacco packaging market are the rising demand for tobacco products and increasing popularity of premium tobacco products. As a result, the revenue generated from the sale of packaging materials used on tobacco products is expected to increase from $19,134.6 million in 2019 at a CAGR of 3.7% during the forecast period (2020–2030). A wide range of tobacco products are consumed around the world, including cigarettes, cigars, chewing tobacco (called gutkha in India), and bidis.
In addition, the demand for premium tobacco products, including smokeless tobacco, cigars, shishas, and dried tobacco, is growing, especially in emerging economies. They are rapidly becoming popular among the youth, men and women alike, as it is considered more stylish and ‘cool’ to use such products over conventional chewing tobacco and cigarettes. Moreover, many bars and pubs in countries like India and China offer flavored shishas, which attract youths in large numbers. Plus, the hookahs (the actual smoking apparatus) available at pubs are colored vividly and carry eye-catching designs.
Primary and secondary are the bifurcations of the tobacco packaging market under the packaging type segment. Of these, the secondary category generated the higher revenue during the historical period (2014–2019) because of the higher requirement for this level of packaging. Secondary packaging holds the individual units of tobacco products, such as cigarette sticks and pouches of chewing tobacco, in place, which is why it is required in higher amounts. Moreover, this packaging often carries the brand logo and information, which is why it also acts as an important promotional tool.
Currently, the highest demand for tobacco packaging materials is witnessed in Asia-Pacific (APAC), simply because it is the largest tobacco consumer in the world. As per the WHO, China was home to 300 million, or one-third of the world’s tobacco smokers in 2019. Additionally, China National Tobacco Corporation is responsible for almost one-third of the global cigarette manufacturing, which creates a high demand for materials for packaging the leaves. To fulfil the increasing demand for such products, advancements are being brought about in the packaging materials and the packaging technology.
Thus, the rising demand for tobacco products is leading to a high-volume requirement for the associated packaging materials.